Apple, Comcast Partners for Streaming TV Service to Bypass Web Congestion

Apple Inc. and Comcast Corp. are reportedly partnering for a streaming-television service that would advance set-top box technology and bypass Web congestion.

Apple has been exploring different ways to penetrate the television industry for quite some time now, so they can let users stream live and on-demand TV programs and digital-video recordings saved in the "cloud." However, the company has failed to find a business model that would entice media companies and cable providers.

Its latest attempt involved the largest cable provider Comcast. According to sources of the Wall Street Journal, the proposed video streams will be considered as a "managed service" and will be distributed in Internet protocol format through a separate cable pipe and not with the more congested cable used for public Internet access.

However, there are still a lot of things to be considered. First, Apple's plans would require the largest cable provider in the United States to make huge investments in network equipment and other back-office technology, meaning the other company will shell out hundreds of thousands to millions to carry on with the plan.

Second is the relationship of Apple with Comcast's subscribers. Under the proposal, the tech giant implied that individuals who would sign up for the upcoming service would sign on using their Apple login IDs. This would be a hindrance as not everyone in the continent is using iDevices.

Third is the agreement on who will be in control of the customer data. According to people close to the matter, Apple wants to take control of the customer data. Comcast wants to retain control over its customer and customer data, too. Next is Apple's request to reduce the monthly subscription fees that the customers are paying. And last, are the licenses and rights from media companies.

Furthermore, Comcast would require Apple to get licenses and rights to ensure that the service wouldn't be priced higher than the traditional pay-TV service.